1H23 Results

23 February 2023

Contents

01

02

03

Highlights

Financial results

Portfolio performance

04

05

Strategy

Annexure

Certain terms used throughout this presentation, including but not limited to, total gross income and revenue, investment income, estimated portfolio value (EPV), implied embedded value (IEV), and commitments are presented as non-IFRS information. Further to this, commitments and EPV include conditional and Investment Committee approved investments, whereas IEV excludes them.

Fund 5 is not consolidated within OBL's Consolidated Financial Statements. Throughout the presentation, consistent with all funds, Fund 5 is presented at 100% values, the outside investor portion is shown in non-controlling interests (NCI). Within OBL's Consolidated Financial Statements, Fund 5 is brought in at the Group's attributable share of income, assets, and liabilities with no associated NCI.

Further information on terms, including definitions of key concepts, is available on slide 19 and in our Glossary at https://omnibridgeway.com/investors/omni-bridgeway-glossaryand Notes at

1H23 RESULTS | 23 FEBRUARY 2023https://omnibridgeway.com/docs/default-source/investors/general/notes-to-qpr.pdfand should be read in conjunction with this presentation.

1H23 RESULTS | 23 FEBRUARY 2023

Strong portfolio growth

For the 6 months ended 31 December 2022

Highlights

Total gross income and revenue

$170.2m

From diversified sources and a secondary market sale

New commitments1

$304.2m

55% of FY23 target

Funds under management2

~$3bn

Across a balanced portfolio

Financial results Portfolio

Net loss after tax

$(30.1)m

Down $21.4m due to lower than expected completions

Success rate 76%

3yr ROIC 3yr IRR

1.15x 35%

Across finalised litigations

  1. Includes conditional and Investment Committee approved investments.
  2. After full establishment of Fund 8.

Estimated portfolio value (EPV)1

$29.8bn

Up 9.6% on 30 June 2022

Implied embedded value (IEV)

$3.8bn

Up 5.2% on30 June 2022

EPV conversion rate

14%

3 year rolling average

Cash and receivables

$220.0m

Plus access of up to $100m debt

performance

Strategy

Annexure

3

1H23 RESULTS | 23 FEBRUARY 2023

Successful execution of strategic and operational objectives

  • Substantial growth in commitments of $304.2m, adding $5.1bn EPV and up 60% on 1H22 (+191% for the US)
  • On track to achieve FY23 commitments target of $550 million through strong 1H23 activity and a $228m pipeline
  • Recognised $92.3 million litigation proceeds, completed 13 investments
  • Accelerated future potential returns and reallocated capital from the completion of a secondary market sale ~US$20m into Fund 1 reducing its 1 NCI balance to ~$12m
  • Maintained strong track record with a high success rate of 76%, a key performance indicator
  • Commenced the second generation funds series II upsizing process that will create US$1bn additional FUM
  • Achieved geographic expansion in northern hemisphere with offices opened in Miami, Chicago, Paris, Milan
  • Enhanced portfolio diversification through both investment type and area of law
  • Made executive leadership appointments including Global CFO and Co-CIO EMEA reflecting global focus
  • CEO succession MD & CEO Andrew Saker has announced his intention to retire, succeeded by Executive Director and Co-CIO - EMEA, Raymond van Hulst, as part of a carefully planned executive management transition

Highlights

Financial results Portfolio performance

Strategy

Annexure

4

1H23 RESULTS | 23 FEBRUARY 2023

Financial highlights

$m

Consolidated Group grossed up to include all Funds at 100%Litigation investments proceeds

Third party income from sale of investment vehicle Less third party interest of Fund 5

Litigation investments proceeds Management fees

Interest revenue and other

Total gross income and revenue

Litigation investments costs derecognised (non-cash) Reclassification to share of income from associates Third party share of sale of investment vehicle

Total income

Litigation investments - impairment and adverse costs Amortisation of litigation investments - claims portfolio Employee expenses

Other expenses

Fair value adjustments of financial assets and liabilities

Profit / (loss) before tax

Income tax benefit / (expense)

Profit / (loss) after tax

Change

1H23

1H22 from 1H22

92.3 115.5 (20)%

86.6-

(18.2)

-

160.7

115.5

39%

3.5

3.2

9%

6.0

8.4

(29)%

170.2

127.1

34%

(61.5)

(70.6)

(13)%

(2.5)

-

(86.6)

-

19.6

56.5

(65)%

(3.7)

(31.0)

(88)%

(2.7)

(2.4)

13%

(39.0)

(30.3)

29%

(17.5)

(13.5)

29%

-

2.4

(43.4)

(18.3)

136%

13.3

9.6

39%

(30.1)

(8.7)

242%

  • Diverse sources of revenue from litigation completions, a secondary market sale, management fees, interest
  • Net loss after tax of $30.1m, down $21.4m
  • There is an estimated profit before tax of ~$33m inherent in the matters for which income is yet to be recognised at 31-Dec-22, which if unlocked prior to 1H23 period end would have resulted in a profit - satisfaction of the income recognition criteria may result in recognition of this profit in future periods
  • Completions were modest with a number of protracted settlement mediations, albeit in advanced stages of litigation
  • Impairment expense and adverse costs down 88% to $3.7m due to unusually high 1H22 impairments
  • Costs consistent with growth targets
  • Employee expenses up 29% with ~$7m of the change related to headcount growth to 214 (from 183 at 31-Dec-21) reflected in improved commitment levels, whist still achieving significant efficiency gains
  • Corporate overheads reflect resumed levels of pre-COVID expenditure for certain categories, new operating locations
    and investment in marketing efforts

Highlights

Financial results Portfolio performance

Strategy

Annexure

5

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Omni Bridgeway Limited published this content on 23 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 February 2023 21:50:09 UTC.